Monday, April 4, 2016

Provision allowing auditing by CMAs under Karnataka Societies Act doesn't encroach on CA profession

Karnataka Co-operative Societies Act, 1959 : Karnataka High Court rejected writ petition filed by 'Karnataka State Chartered Accountants Association' challenging the amendment to the Karnataka Co-operative Societies Act, 1959 (KCS) which allowed auditing of accounts by Cost Accountant or Cost Accountants Firm saying it to be statutorily governed and denied to interfere with same.

• Amendment to the definition of Auditor under the Karnataka Co-operative Societies Act, 1959 to include a Cost accountant, within the meaning of Cost and Works Accountants Act, 1959 couldn't be said to null and void and ultra-vires the Constitution of India and Central Legislatures as it did not result in encroachment on the profession of Chartered Accountants.

Key changes in new income-tax return forms

Every year CBDT notifies new Income-Tax Return (ITR) forms. However, in the recent past CBDT had notified ITR forms a bit late causing inconvenience to various tax practitioner and taxpayers in filing ITRs within prescribed time. Thus, we have witnessed a spate of writ petitions in the various High Courts for extension of due date of filing return.

The Delhi High Court in case of Avinash Gupta v. Union of India [2015] 63 121 (Delhi) criticized the Government for its delay in notifying ITR forms every year. The Delhi High Court made following remarks:

There appears to be no justification for delay beyond the assessment year in prescribing the ITR forms. Accordingly, the respondents are directed to, with effect from the next assessment year, at least ensure that the ITR form should be available as on 1st April of the assessment year unless there is a valid reason therefor.

Thus, considering such suggestion of the High Court the Government has now notified the ITR forms, namely, ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4, ITR-4S, ITR-5, ITR-6 and ITR-7 on March 31, 2016.